Author Topic: Business Ownership and Public Service Loan Forgiveness in net worth?  (Read 1070 times)

MarioMario

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I get jealous when everyone has a net worth number.  My situation is a little different in that I can calculate my debts vs investments and assets.  But I have two big items I don't know how to handle:

(1) I own large shares of retail businesses I have a hand in running.  Neither one pays me great but for the amount of work I put in the payment isn't bad.  These are relatively passive income.  I could hazard a guess at the worth of the businesses but I don't really see an exit strategy for either in terms of selling my shares so I don't know how relevant that number would be.

(2) My wife has student loan debt of ~$200k.  I think I have run the numbers correctly and we have decided since she is almost assuredly going to be working for a qualifying employer we would save money by doing income based repayment over trying to aggressively pay down the loan when she is done with residency. 

I end up just not including either of these because in my mind they kinda just cancel each other out.  As I try to get my financial reporting more in order (I want to be able to look at pretty graphs and discuss them with my wife) I struggle with these two items.

biglawinvestor

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Re: Business Ownership and Public Service Loan Forgiveness in net worth?
« Reply #1 on: March 30, 2017, 02:50:04 PM »
You mention that your wife is a resident. Have you done a lot of reading over at the White Coat Investor? Jim writes specifically for doctors and medical students. I think you'll find it pretty helpful if you're not already familiar.

http://www.whitecoatinvestor.com/

MarioMario

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Re: Business Ownership and Public Service Loan Forgiveness in net worth?
« Reply #2 on: March 30, 2017, 03:37:23 PM »
You mention that your wife is a resident. Have you done a lot of reading over at the White Coat Investor? Jim writes specifically for doctors and medical students. I think you'll find it pretty helpful if you're not already familiar.

http://www.whitecoatinvestor.com/
I haven't, will definitely check it out.  Thanks for the tip.

spjulep

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Re: Business Ownership and Public Service Loan Forgiveness in net worth?
« Reply #3 on: April 01, 2017, 05:49:21 PM »
I'm a bit conservative, so I would count the student loans as pure debt until they are actually paid off. 10 years is a long time for policy changes, and I was just reading about cases where the Dept of Education or whoever has rescinded the offer for forgiveness. If you do get the loans forgiven, then your net worth goes up quickly and you can retire/reach FI earlier than expected. Same reason why I don't include Social Security in calculations. I don't expect to receive it, and if I do, it will be a bonus.

Proud Foot

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Re: Business Ownership and Public Service Loan Forgiveness in net worth?
« Reply #4 on: April 03, 2017, 10:46:41 AM »
I am with spjulep on this as well.  Include your student loans until they are actually paid off.  Since we are nearing the 10 year mark of those plans some are finding out the loan servicer approved the applicants into the debt forgiveness programs but the Dept of Ed says otherwise.

As far as the small business, are you able to calculate your book value in the company? Since its illiquid that might be the best way to account for it in your net worth. Otherwise it might be easier to ignore it.

edit to fix link
« Last Edit: April 07, 2017, 07:47:53 AM by Proud Foot »

MarioMario

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Re: Business Ownership and Public Service Loan Forgiveness in net worth?
« Reply #5 on: April 06, 2017, 06:20:23 PM »


I'm a bit conservative, so I would count the student loans as pure debt until they are actually paid off. 10 years is a long time for policy changes, and I was just reading about cases where the Dept of Education or whoever has rescinded the offer for forgiveness. If you do get the loans forgiven, then your net worth goes up quickly and you can retire/reach FI earlier than expected. Same reason why I don't include Social Security in calculations. I don't expect to receive it, and if I do, it will be a bonus.

Makes sense.

MarioMario

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Re: Business Ownership and Public Service Loan Forgiveness in net worth?
« Reply #6 on: April 06, 2017, 06:21:49 PM »
I am with spjulep on this as well.  Include your student loans until they are actually paid off.  Since we are nearing the 10 year mark of those plans some are finding out the loan servicer approved the applicants into the debt forgiveness programs but the Dept of Ed says otherwise.[/urll]

As far as the small business, are you able to calculate your book value in the company? Since its illiquid that might be the best way to account for it in your net worth. Otherwise it might be easier to ignore it.
I am pretty confident thesm hospitals are pslf compatible.  The current court cases should be against fedloan not the gov.

But planning for the worst and being conservative makes sense.

It just sucks having a negative net worth.